Bitcoin Market Overview

If we look at the daily chart of Bitcoin, we should note a double bearish divergence as a strong trend reversal signal. The market looks overbought and it's near 8000.00 resistance level which is a possible reversal zone. RSI confirms price reversal. In spite of MACD still gives a bullish signal, we should be ready to see a correction movement. If we talk about any other market, the bearish divergence is a good signal for closing long trades. But this market is in strong uptrend with great potential for further upward movement. It can jump higher even it looks overbought. This market has strong fundamental support, that's why Bitcoin can break 8000.00 and make a new high before a deep correction movement which should be also. We can try to catch possible upward movement opening short term trades. I wrote about such buy signal in the previous post about Bitcoin. Also it's possible to fix only the part of profit and leave the rest trade volume for long run. It will allow you to maximize the profit. But what if the bearish divergence will be realized as a reversal signal? In such way we must be ready to see falling to one of SMA with periods 50 and 100. The round number levels like 6000.00 and 5000.00 will make SMA50 and SMA100 more strong for revesal signals. Reaching these support zones will give us good trading opportunities. But will the market fall to these levels? It's a good question. We should watch for the market and be ready to both variants of price movement. And what do you think? Please, share your ideas in comments.

Komen:

The price still stays near 8000.00 level. We don't have a solid signal confirming the price breakout above the resistance level.The daily chart still gives us the bearish divergence and the trend reversal signal. Be careful with trading in this zone.